According to an article in the financial post this week, Real Estate Agents and Mortgage Brokers may soon become extinct. How is this happening? In one simple word: technology. According to a recent study, 90% of clients start their home search online.

But how will Real Estate agents be affected? Consumers will be allowed to live in their homes virtually for a period of days to experience what it would be like to live there. New builders are starting to experiment by having prospective buyers envision what their new unit will look like. By seeing the proposed home, clients can easily suggest changes. Needless to say, this will certainly affect the Real Estate industry.

The days of the big Real Estate offices will certainly decline in my opinion, and less Real Estate agents will be required. The technological savvy will survive and thrive. However, agents will still be needed since virtual reality does not tell you the neighbourhood you are in or who your neighbours may be for example.

Mortgage brokers have already been hit by the new technology. Today online there are already online mortgage supermarkets like ratespy where consumers can shop. It is similar to Trivago which has several companies quoting their rates for hotels. Is this good for the consumer? Yes, it does make everyone sharpen their pencils, but it is not perfect. At Robert Floris’ Mortgage Architects office in Hamilton, Ontario, we have experienced the “rate shopper”. The biggest problem we see is that most mortgage shoppers are not very well informed when it involves financing. They understand price, but forget value and most importantly do not have a plan for their mortgage.

Currently 73% of Canadians have searched for rates online but over 77% have used the mortgage tools to help them with affordability. This is good since we do want educated clients. In terms of showing value to our clients, we discuss their dreams in life, their plan in terms of amortization with their mortgage (in other words to be mortgage free), and family planning. Unbelievable that we mention family planning but often Canadians do not factor in daycare to their future affordability.

To sum it up, yes technology is shifting many areas of life. Our real estate and mortgage needs will be shaken up. But the good news is that the smart and educated professional will always survive. 🙂

Robert Floris is a Mortgage Agent located on the East Hamilton Mountain, serving Hamilton and the GTA and Ontario. He not only offers the best mortgage rates, but also honest advice and a financial plan at no charge to the client.

Robert can be contacted at 905-574-9200 Ext. 215 OR by email at mortgages@robertfloris.com. You can fill out an application online at https://application.malink.ca:8112/App/MARC/FLORISR/en-ca/1896 with absolutely no pressure and no obligation.

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